Jeonse vs Monthly Rent Guide
Opportunity cost is the key
A jeonse deposit tied up in a house loses the chance to invest elsewhere. Paying monthly rent reduces cash flow, but if the freed-up capital earns steady returns, renting can come out ahead.
The numbers you need
- Jeonse deposit amount
- Expected return on the deposit (e.g., 4%)
- Monthly rent level
- Jeonse loan interest rate, if used
Compare with our calculators
Frequently Asked Questions
What is the core difference between jeonse and monthly rent?
Jeonse requires a large refundable deposit with no monthly rent, but carries the opportunity cost of that locked-up capital. Monthly rent drains cash flow but needs far less upfront money.
How can I tell which is better for me?
Compare the expected return on the deposit versus the rent you would save. When rates/returns are low, renting tends to win; when they are high, jeonse tends to win.